Japan shares rebound after 5-day losing streak

posted: 23 HOURS 3 MINUTES AGO

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TOKYO -Japanese shares rebounded Wednesday, snapping a five-day losing streak, but gains were limited due to a strong yen and concern over the pace of a global economic recovery.

The benchmark Nikkei 225 stock average rose 40.06 points, or 0.4 percent, to 9,441.64 after hitting a fresh four-month low Tuesday. The broader Topix added 0.5 percent to 833.29.

"The market rose on a technical rebound after extended losses. But investors were not keen on buying shares due to lingering concern that a recovery in the global economy could be slow," said Yutaka Shiraki, senior strategist at Mitsubishi UFJ Securities Co. Ltd.

Investors were also reluctant to chase gains due to a strong yen, which pressures Japanese exporters as it erodes their overseas profits.

But the market managed to hold firm as investors took heart from October trade data showing Japan's battered exports were recovering thanks to strong demand from China and the rest of Asia.

Exports in October fell 23.2 percent year-on-year — the slowest pace of decline in a year — to 5.3 trillion yen ($60 billion), the government said Wednesday.

Among blue chips, Toyota Motor Corp. — the world's No. 1 automaker — rose 1.2 percent to 3,420 yen. The U.S. government said Toyota would recall 110,000 Tundra trucks from the 2000-2003 model years to address excessive rust on the vehicle's frame.

Honda Motor Co. rose 2.6 percent to 2,795 yen. Sony Corp. added 2.1 percent to 2,415 yen. But Panasonic Corp. slipped 0.6 percent to 1,127 yen.

Struggling Japan Airlines Corp. gained 3.4 percent to 90 yen after falling to a record low of 87 yen a day earlier.

In currencies, the dollar fell to 88.31 yen in afternoon trade Wednesday from 88.53 yen in New York late Tuesday. The euro rose to $1.5000 from $1.4958.

2009-11-25 03:01:20